E-commerce Blog | BlueTuskr

5 Ways to Increase Your Amazon Profits - Updated 2023

Written by Guest | Apr 27, 2023 1:15:54 AM

Selling on Amazon is difficult, but rewarding, work. Many sellers are content to just stick to a certain process when they find something that works. But the Amazon sellers that have the most success are the ones that are always looking for new ways to improve their processes and to increase profits on Amazon. 

Whether you are just getting started or a long-time professional seller, chances are there are changes that you could make to boost the profitability of your business. Here’s a look at five ways you can increase Amazon profits.

1. Identify Hot Sales Trends

Fortunately, Amazon does the work for you when it comes to keeping up with hot trends. If you visit Amazon.com, you can click the drop-down menu on the top left corner of the website that is labeled “All”. The first three sections you see when you click on the “All” tab are “Best Sellers”, “New Releases”, and “Movers & Shakers”.

  • Best Sellers - This page shows you all of the top- selling products on Amazon. It also allows you to browse by specific categories and product types so that you can dive into your specific niche.
  • New Releases - This page shows hot new releases on Amazon and also allows you to browse specific categories and product types. 
  • Movers & Shakers - This page features the biggest gainers in sales rank over the last 24 hours, which lets you see what specific products and product types are seeing big spikes at any particular point in time.

Amazon sellers should make a habit of checking these pages regularly. You could decide to develop a new product based around current trends. Or market your products with bundles or advertisements that ride the wave of hot trends. Understanding who and what is having success on Amazon can give you some great ideas on updates you can make to your store.

 

2. Optimize your Product Listings

Even the slightest error or imperfection on your product listings can have a negative effect on conversion rates. Missing out on a valuable keyword might make your product less likely to show up in certain searches. Not having clear, high-definition pictures could leave your potential buyers confused about the product and its size or other valuable details. A description that doesn’t properly explain your product’s utilization could force shoppers to look for another listing that does.

Go over all of your product listings with a fine-tooth comb. Your photographs, titles, descriptions, bullet points, and everything else should be as detailed and accurate as possible. Don’t just set and forget your product listings; revisit them from time to time to see if anything has changed or if customer questions could better be answered within the description. A flawless product listing will make your brand look professional and lead to more sales per visit.

 

 

3. Generate Product Reviews

Many Amazon buyers use product reviews as a major part of their shopping process. Given the choice between two items with similar prices and functionalities, the product with the higher quantity and quality of reviews will more than likely get the sale. You want as many people who buy your product as possible to leave a product review; it adds to the credibility of your products and makes your product more likely to show up organically in searches.

Amazon has very strict policies in place to regulate the legitimacy of its reviews. Your best option for making sure you are within Amazon’s Terms of Service is to use the site’s “Request a Review” button when requesting a review. This button can be found on the order page. Of course, remembering to click that button for every order and doing so in a timely fashion can be time-consuming. The product review manager at Feedback Whiz allows you to automate the process and gives you access to other helpful tools including alerts when you receive feedback on specific items.

 

4. Lower your Amazon Fees

Paying fees is just part of the cost of doing business on Amazon. Many of the most common fees that sellers run into including referral fees, fulfillment fees, inventory fees, and refund administration fees are set by Amazon and there isn’t much that Amazon sellers can do about them. But there are a few things that you can do:

  • Save on shipping Whether you send your products to Amazon’s warehouse for Fulfillment by Amazon or directly to the consumer with merchant fulfillment, you are going to spend a decent amount every month on packaging products including shipping tape, shipping labels, and boxes. Look for ways to save in this area by buying in bulk, making deals with local vendors, and shopping around for the best deal.
  • Pay attention to storage feesSellers are charged storage fees on all of their products based on the size of the items being stored and how long they are being stored for. Make sure that you aren’t overstocked to avoid paying extra for products that aren’t quickly turned around.
  • Check for mistakes Amazon will sometimes make mistakes such as categorizing a standard size item as oversized or forgetting to compensate you for goods lost or damaged in the warehouse. Keep your eyes open for discrepancies in your fees and contact customer service if there are any issues.
  • Get a professional account - Sellers that don’t have a professional seller account pay an additional $0.99 per product in fees. If you sell more than 40 items per month, make sure you are upgraded to a professional account so that you are paying the flat $39.99 per month for the professional account instead of the extra per-item fee.

 

5. Analyze all of your Data

The numbers tell the story at the end of the day. If you take the time to study exactly how much profit every item in your store is generating and how those products are performing now compared to other time frames, you will always have a grasp on which products might need tweaking with extra advertising or stock changes or whatever else.

The Feedback Whiz Profit and Loss Tracking Tool can be an excellent companion in this quest for knowledge and statistics. It organizes every facet of your business into attractive and easy-to-read charts and graphs that are fully customizable to your needs and research. You can always be on top of everything happening in your store by closely monitoring its profitability on both an overall and a product-by-product level.

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